Independent Evaluation of the Water and Sanitation Hibah Program Indonesia

This evaluation assess the effectiveness of Indonesia's Water and Sanitation Hibah Program pilot and identifies lessons for applying this mechanism more broadly. The program, which operates by paying an agreed amount for verified household water or sanitation service connections installed by local water and sanitation utilities, takes advantage of excess capacity of water companies to bypass the need for infrastructure investment. It was evaluated through a document review, key informant interviews, a key stakeholder workshop, field work, and a beneficiary survey, along with quantitative data from existing sources.

The number of household water connections was in line with targets overall and exceeded in 10 locations. Sanitary connections were in line with targets but had more challenging infrastructure requirements.
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Water beneficiaries reported access to better quality and cheaper water, substantial time savings, and health improvements. Sanitation connections led to improvements in the local environment, included reduced odors and pooling of stagnant water. Both groups reported a desire to stay connected to the services if prices stayed affordable.
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Women, disabled and elderly people were significant beneficiaries of the program.
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Because the program did not dictate utilities' implementation approach, there was innovation resulting in flexible pricing and marketing approaches. * As the pilot selected higher performing local governments and utilities, widening the capacity to reach more low-income households will require some modification to the program.
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Future programs should have more flexible funding, run over a longer term, and include more support for capacity development.
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Education activities could be improved to include information on reducing environmental impact.
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